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Doesn't make any sense to me that she is paying Medicare premiums and getting no benefits from them.

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"Medicare plans" are Medicare Advantage plans. If his wife has Medicaid in home care she probably also has Medicaid for her health insurance supplimental. When you are on Medicaid you have no need to have another plan other than Medicare. At 65 you must sign up for Medicare. Either as primary coverage or secondary coverage if ur still working. (This may depend on what type of insurance coverage ur employer gives but a friend has Medicare as his secondary and he is 72 working) This lady needs to have Medicare as her primary. As I said Medicare will pay for 80% of her healthcare cost and the balance of 20% will be covered by Medicaid.

My disabled nephew was on full Medicaid. Once he was on Social Security Disability, he was changed to Medicare and Medicaid his secondary.
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Make an appointment with an AARP representative who can walk you through the different Medicare plans. Most have training to help answer your questions based on plans in your area.
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No, you can't get rid of Medicare. Medicaid is only a supplimental. Medicare pays the 80% and Medicaid covers the 20%. With my nephew Medicaid does pick up the $144 premium. (He only receives 1k in income a month) If this is not being done, you may want to ask the caseworker about this. If you are paying separately for a prescription plan, I would check with the caseworker if you need to. In my State Medicaid pays prescriptions, vision and dental.
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If your wife has Medicare, Medicare pays for Medicare-covered services, and then Medicaid generally would cover the balance of what Medicare does not. When you talk about cancelling premiums, what kind of plan is your wife on? Does she have traditional Medicare (parts A and B), plus a prescription drug plan? Generally the premium for Medicare and the prescription drugs is withheld from social security payments, though some people do pay directly instead. Does she also have a supplement plan (sometimes called Medigap) that covers things such as the Medicare co-pays? (Medicare pays only 80%.) Or does she have a Medicare Advantage plan, where services and prescriptions are included?

I think the best thing to do would be to check with the Medicaid program in your state and see what they advise. They might require her to have continued Medicare coverage. My brother in law had to go on Medicaid (LTC, nursing home) after his assets were spent down. We were advised that he should continue to pay for his Medigap and prescription drug policies as well as Medicare. The amount spent on these was deducted from consideration in his income when they were computing what he needed to pay monthly to the nursing home. If he stopped paying, it would have raised his income on paper, but that money would just have had to go to his cost of care. Because of his low income and being on Medicaid, Medicare is actually covering all his prescription co-pays through their "special help" program as well as the cost of the part D insurance. The situation may be different if your wife is receiving services at home

You might find these helpful:
https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNProducts/downloads/Medicare_Beneficiaries_Dual_Eligibles_At_a_Glance.pdf

https://www.ssa.gov/benefits/medicare/prescriptionhelp.html
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